While today is the deadline for filing your state and federal tax returns, Nebraskans may’ve already noticed a change that will impact their taxes next year. I-R-S spokesman Christopher Miller says the “Making Work Pay” tax credit is now showing up in your paycheck.
Miller says employers were asked to change tax withholding tables beginning April first, so you will see more money in your check. He says the credit can be $10 to $13 per paycheck, and will ultimately end up being $400 per individual, or $800 a year for those married filing jointly.
Some people might want to tweak their withholdings to keep from having too much money taken out. Miller says people who have more than one job, or a family where both spouses work, may want to adjust the withholding so there isn’t too much taken out and then you would owe federal taxes at the end of the year.
Miller says there are a couple of indicators for those who might want to make an adjustment. He says you’ll probably only be impacted negatively if you usually end up at a zero balance for taxes, or if you usually pay taxes. If you usually get a refund, then that refund will just be slightly reduced.
There are a couple of ways to check on whether you have the proper withholding. Miller says you can ask your tax professional if you need to adjust your withholding, or you can go to the I-R-S website and use the withholding calculator to see if you need to make an adjustment. Miller says the change will impact your tax returns next year, and will have no impact on 2008.